Steven Pressman Comments by Anne Hartung University of Luxembourg The paper in a nutshell Aims Epistemologyacademic discourse Find a good measure of middle class Apply this definition to LIS data and show its evolution over time ID: 579827
Download Presentation The PPT/PDF document "Defining and Measuring the Middle Class" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
Defining and Measuring the Middle Class Steven Pressman
Comments by Anne
Hartung
, University of LuxembourgSlide2
The paper in a nutshellAims
Epistemology/academic discourse: Find a “good measure of middle class”
Apply this definition to LIS data (and show its evolution over time?)
Contributions
Focus on the middle while most research looks at the bottom and the top of the income distribution
Critical, detailed review of different definitions and
operationalisation
of middle class
Evolution of middle class over a long period of time
Slide3
Income-based definition of middle class Two “categorical” approachesProportion of the distribution (between 20
th
and 80
th
percentile)
Percentage of median household income
Here:
Percentage of median household income
Based on Pew Survey (US, 2010) “How much income was necessary for a typical four person household to be middle class”: 67-200%
Disposable household income
Cash and near-cash earnings, capital income, private income, public transfers, less direct taxesSlide4
Drawbacks of applied definitionBased on US perception of middle class 2010 –
but is the understanding of middle class (living standards) really constant over time (crisis?) and across regions/
neighbourhoods
and countries?
The necessary income for middle class varies across time and countries, e.g. expenditures for housing, education, etc.
What is then the advantage relative to the first approach (middle quintiles)?
How arbitrary are these thresholds and what is the relative advantage to continuous measures of the middle class? Can this measure help to locate the middle class?
Slide5
Income hierarchy in six countries
Source: Luxembourg Income Study (LIS)
Database
Chauvel
, L. 2016. The intensity and shape of inequality: The ABG method of distributional analysis.
Review of Income and Wealth
. Slide6
Ignored but important facets of middle classFocusing on disposable income ignores important facets of middle class (which however can be estimated with the LIS data)
Growing relevance of wealth relative to income (
Piketty
2014)
Housing prices relative to income (
Mack and Martínez-García 2011,
Bradbury 2013 using LWS
)
Intra-household earnings ratio
Labour
stability
… Slide7
Suggestions in sumFurther potential to contribute to the debate:Compare definitions against each other and point out implications (cf. aim of finding a “good measure”)
Relate empirical analysis to current debate on a broader range of aspects of middle class (possible with LIS)
Facilitate international comparison and relate to finding to
Gornick
and
Jäntti
(
eds
) 2013
Income Inequality: Economic Disparities and the Middle Class in Affluent Countries